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The main purpose of business is to maximize shareholder value over the
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17 Dec 2025, 00:38
17 Dec 2025, 00:38
Expert Reply
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Question Stats:
58% (00:39) correct
41% (01:01) wrong based on 12 sessions
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The main purpose of business is to maximize shareholder value over the long term by selling goods or services. Thus, companies that use funds for anything other than to increase their sales are simply (i) _______ the shareholders.
| Blank (i) |
|---|
| A. benefiting |
| B. attenuating |
| C. denigrating | D. cheating | E. neutralizing |
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The main purpose of business is to maximize shareholder value over the
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19 Dec 2025, 05:02
19 Dec 2025, 05:02
Should sell goods and services to increase the shareholder value. This must be primarily this way.
Re: The main purpose of business is to maximize shareholder value over the
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20 Dec 2025, 09:27
20 Dec 2025, 09:27
Expert Reply
The argument presented sets up a strict, normative definition of business purpose:
1. Premise: The main purpose of business is to maximize shareholder value by increasing sales (over the long term).
2. Conclusion: Companies that use funds for anything other than increasing sales are (i) ________ the shareholders.
According to this premise, if a company deviates from its "main purpose" (maximizing shareholder value), it is violating its obligation to the shareholders. Therefore, using funds for non-sales-increasing purposes is seen as an act of harm or deceit against the shareholders.
- A. benefiting: Opposite of the intended meaning in this context.
- B. attenuating: Reducing the force, effect, or value of something. (While they are reducing the potential profit/value, this is too weak and indirect.)
- C. denigrating: Criticizing unfairly. (Refers to reputation, not financial action.)
- D. cheating: Acting dishonestly or unfairly in order to gain an advantage, often implying a breach of trust or legal obligation (which maximizing shareholder value is often treated as). (Fits the idea of violating the stated primary obligation to the shareholders.)
- E. neutralizing: Making something ineffective. (Irrelevant.)
The word that best captures the idea of violating the stated financial obligation and acting contrary to the shareholders' mandated purpose is cheating.
The correct choice for Blank (i) is cheating.
1. Premise: The main purpose of business is to maximize shareholder value by increasing sales (over the long term).
2. Conclusion: Companies that use funds for anything other than increasing sales are (i) ________ the shareholders.
According to this premise, if a company deviates from its "main purpose" (maximizing shareholder value), it is violating its obligation to the shareholders. Therefore, using funds for non-sales-increasing purposes is seen as an act of harm or deceit against the shareholders.
- A. benefiting: Opposite of the intended meaning in this context.
- B. attenuating: Reducing the force, effect, or value of something. (While they are reducing the potential profit/value, this is too weak and indirect.)
- C. denigrating: Criticizing unfairly. (Refers to reputation, not financial action.)
- D. cheating: Acting dishonestly or unfairly in order to gain an advantage, often implying a breach of trust or legal obligation (which maximizing shareholder value is often treated as). (Fits the idea of violating the stated primary obligation to the shareholders.)
- E. neutralizing: Making something ineffective. (Irrelevant.)
The word that best captures the idea of violating the stated financial obligation and acting contrary to the shareholders' mandated purpose is cheating.
The correct choice for Blank (i) is cheating.
